Oracle Corp. has issued a force majeure notice to Stack Infrastructure, a unit of Blue Owl Capital Inc. (OWL) that is developing the $165 billion Project Jupiter data centre campus in New Mexico, according to people familiar with the situation [Source: Bloomberg]. The notice seeks to defer Oracle's payment obligations should the 2.5GW facility fail to come online by 2028 as planned, rather than representing a withdrawal by Oracle from its role as the site's primary tenant.
The trigger for the notice is a series of setbacks affecting the project's energy supply. A natural gas pipeline developed by Energy Transfer LP (ET), which was scheduled to begin service this month and supply fuel to the campus, has been delayed by nearly six months to 1 February 2027 following repeated permit denials from the New Mexico State Land Office. The 1,400-acre campus is designed to run on gas-powered fuel cells supplied by Bloom Energy Inc. (BE), making a reliable gas supply a prerequisite for operations. Oracle had previously requested federal regulators to fast-track review of the pipeline to allow it to enter service by 15 August, warning that missing that window would lead to materially higher costs, after an initial application had been denied in March.
Despite the notice, both parties publicly affirmed their commitment to the project. Oracle stated that 'Project Jupiter remains on our planned schedule' and that it is 'fully committed to New Mexico and confident in our path forward' [Source: CNBC]. Blue Owl told Bloomberg that 'this notice does not change the financial commitments to this multi-year project' [Source: Bloomberg]. Stack Infrastructure and BorderPlex Digital Assets are jointly building the four-building campus, with equity provided by funds managed by Blue Owl, which acquired Stack in 2024. Oracle was announced as the campus tenant in January 2026.
Oracle shares (ORCL) fell as much as 5% in early Thursday trading before closing down 3.47%, while Blue Owl Capital shares (OWL) declined 3.6% on the day. Oracle's $18 billion in loans tied to the data centre were quoted at 89 to 91 cents on the dollar, according to the Financial Times [Source: Financial Times]. Earlier in September, Oracle had issued a Request for Proposals to develop 2GW of new renewable energy capacity in New Mexico to support power delivery at the Project Jupiter campus. On Thursday, the New Mexico state high court denied petitions filed by environmental groups against the hyperscale data centre.
Project Jupiter forms part of the broader Stargate AI infrastructure initiative unveiled by US President Donald Trump alongside leaders of Oracle, OpenAI and SoftBank Group Corp. A prior $400 billion deal was signed with Oracle and SoftBank to support the development of five US data centres, including the New Mexico site. Force majeure is a contractual provision that frees parties from liability or obligation when an extraordinary event beyond their control prevents fulfilment of contractual terms.
Sources: Bloomberg, Bloomberg Law, CNBC, DataCenterDynamics, SiliconANGLE, Financial Times, Santa Fe New Mexican, Business Insider